Can you apply partial refund to next years tax if in chapter 11 therefore keeping the max refund amount allowed by trustee?

Answer 1

Wow...you've got things figured out so well. Suprising your in bankruptcy (pretty well defined as failure) because you can't figure out how to make enough money to pay your debts and need to others to take care of you!

And when you have to provide your return (fairly standardly part of the process), I guess you figured out how to explain what is on it so it doesn't look like your trying to do anything illegal, or criminally contempteous/fraudulant, like being against your sworn committment to the Court/trustee you made when filing a petition with them begging protection by allowing and enacting bankuptcy for you.

By the way - sure your in C-11 - that is only for Business/Corporations. C-13 (which goes on for several years, which includes next year) or C-7 are for individuals.

(REPLY)

Actually, I am in Chapter 11 as an Individual, obvious you don't know what much about the chapters, and yes we were unfortunate enough to lose half our income due to loss of one's employment. As far as begging, I really wasn't, I actually should've filed chapter 7 and let them take my house in the ghetto, and my vehicle with a 17 percent interest rate, but I am making ends meet now and was unable to make up the rearrage of 2-3 months without the restructure. Illegal? Well, that's a pretty far statement. You either can or can't.

And your right it can be done, but really rather uncommonly - even as the exception to the rule, (and why 11 when 13 realy accomplishes so much of the same thing I agree to not see). True I've been scolded for doing the too conditioned and qualified responses enough that I try to stay to the more direct as much as possible. While instructing what should be done with your overpayment, like crediting to next year is available to any taxpayer, it is illegal to try and keep/hide from the administrator what he would otherwise have rights to.

From another independent source defining C-11

Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to any business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7 governs the process of a liquidation bankruptcy, while Chapter 13 provides a reorganization process for the majority of private individuals with unsecured debts of less than $336,900.00 and secured debts of less than $1,010,650.00 as of April 1, 2007.

And yet, the below from the official US Courts website introducing the laws involving C-11, with link following. Better tell them they don't know what they are talking about too.

A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy.

An individual cannot file under chapter 11 or any other chapter if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d)-(e). In addition, no individual may be a debtor under chapter 11 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111. There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. If a debt management plan is developed during required credit counseling, it must be filed with the court.

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter11.HTML